Carol Learns That Dave Has Hired a New Employee to Work

Multiple Choice

Carol learns that Dave has hired a new employee to work at her company. Although Dave did not have permission to hire the new employee, Carol likes the new employee and decides to honor all the terms of the employment contract that Dave negotiated. Which of the following types of agency relationship have Carol and Dave formed?

A) agency by implied authority
B) agency by agreement
C) agency through ratification
D) agency by estoppel